The Pakistan stocks experienced a bullish trend on Friday as the benchmark KSE-100 index soared by 488 points, closing at 44,822 points. This marked a significant increase from the previous day’s closing of 44,334 points, reflecting a rise of 1.1 percent.
(more…)Day: October 15, 2021
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Rate for profit on debt for Tax Year 2022
The Federal Board of Revenue (FBR) has disclosed the tax rates applicable to profit on debt under section 7B of the Income Tax Ordinance, 2001, for the tax year 2022.
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Rate of dividend tax for Tax Year 2022
The tax rates for dividend tax imposed under section 5 of the Income Tax Ordinance, 2001 for tax year 2022 under the First Schedule of the Income Tax Ordinance, 2001.
The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.
Following are the rates of dividend tax:
The rate of tax imposed under section 5 on dividend received from a company shall be-
(a) 7.5% in the case of dividends paid by Independent Power Producers where such dividend is a pass through item under an Implementation Agreement or Power Purchase Agreement or Energy Purchase Agreement and is required to be re-imbursed by Central Power Purchasing (CPPA-G) or its predecessor or successor entity.
(b) 15% in mutual funds, Real Estate Investment Trusts and cases other than those mentioned in clauses (a) and (c).
(c) 25% in case of a person receiving dividend from a company where no tax payable by such company, due to exemption of income or carry forward of business losses under Part VIII of Chapter III or claim of tax credits under Part X of Chapter III.
(Disclaimer: The text of the above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)
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KIBOR rates on October 15, 2021
KARACHI: State Bank of Pakistan (SBP) on Friday issued the following Karachi Interbank Offered Rates (KIBOR) on October 15, 2021.
Tenor BID OFFER 1 – Week 7.21 7.71 2 – Week 7.25 7.75 1 – Month 7.29 7.79 3 – Month 7.71 7.96 6 – Month 8.10 8.35 9 – Month 8.38 8.88 1 – Year 8.60 9.10 -
Digital payment facility made must for corporate clients
KARACHI: The State Bank of Pakistan (SBP) has made it mandatory for its regulated entities (REs) including banks, microfinance banks, payment system operators and payment system providers to provide digital means of payments to their corporate clients to enable businesses for sending and receiving their payments.
Ina statement issued on Friday, the central bank said the SBP has now made it mandatory for its regulated entities (REs) including banks, microfinance banks, payment system operators and payment system providers to provide digital means of payments to their corporate clients to enable businesses for sending and receiving their payments.
SBP, in its recent Circular, has asked its regulated entities to facilitate their institutional clients including corporations, companies, and partnerships for making large value payments through digital channels.
Regulated entities are now required to extend online portals/platforms for digital payments & receipts of corporates including online interbank fund transfer services, online bill/invoice sharing and payment services like over the Counter (OTC) digital payments services/facilities, card payments using Point of Sale (POS) terminals, QR codes, mobile devices, ATMs, Kiosk or any other digital payments enabled device.
In order to monitor the progress of implementation of these instructions, SBP has advised banks to submit roadmap of implementing these measures within 30 days.
Banks are also required to submit quarterly progress reports to SBP on the number of businesses facilitated for digitization of their payments and receipts.
SBP expects that these measures would increase documentation of value chains and help businesses manage their large value transactions more effectively.
The initiative will also facilitate implementation of Federal Board of Revenue’s recently introduced measures on integration of businesses with FBR system and conducting of corporate payments through digital means.
Regulated entities are also required to make all efforts to onboard non-corporate players including Sole Proprietors, SMEs and MSMEs for the provision of digital payments.
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Indenters not paying tax despite rate reduction: SRB
KARACHI: Khalid Mehmood, Chairman, Sindh Revenue Board (SRB) on Friday said that many indenters are still not paying tax and opted to approach court.
SRB chairman stated this while sharing views with the members of Karachi Chamber of Commerce and Industry (KCCI).
Khalid Mehmood said that sincere efforts were made to resolve the indenters issue whose tax was reduced from 13 percent to 3 percent yet, many indenters were still reluctant to pay tax and have gone into litigations. “If they (Indenters) have any other feasible option, it can be shared with SRB and we will take it into consideration,” he assured.
He said that point of sale measure was being taken to capture sales of restaurants, beauty parlors and other outlets where a large number of cash transactions were taking place. “In this regard, we will be requiring your cooperation as it will be a substantive move,” he added.
Chairman SRB said: “Instead of being a typically strict tax collecting authority, we try our best to make SRB a taxpayers’ friendly institution and we have succeeded in attaining this objective to a certain extent.
“Even in those matters in which there were differences between the SRB and the business community, we usually act leniently in terms of enforcement and the Board has been overall enjoying good relations with the business community of Karachi.”
He added that any unwarranted notice received by members of the business community can be brought to SRB high-ups’ notice who are always available to listen to and amicably resolve the issues.
Chairman BMG Zubair Motiwala, while congratulating SRB Chairman on achieving record tax collection of Rs128 billion, stated that there was a huge potential for further growth as SRB has created an enabling and cordial environment in which the taxpayers were being facilitated as much as possible which was a very nice approach.
He stressed that out of a total revenue of Rs128 billion, Karachi must be contributing somewhere around Rs110 billion and out of this huge contribution, the Sindh government should look into the possibility of spending half of the amount on development of Karachi.
He further pointed out that the Worker Welfare Fund (WWF), which was either being submitted to SRB or FBR, was a serious issue that stands unresolved to date. Many taxpayers, who submit it to FBR, adjust WWF in Income Tax Returns but those taxpayers, who submit it to SRB, cannot carry out adjustment in IT returns.
Hence, the SRB and FBR will have to sit together to deal with this issue as it puts the business community in confusing situation, he added.
He further stated that sales tax on Exports was not being charged anywhere around the world hence it should not be charged here as well because all the services including shipping lines and terminals operators etc. were being availed for exports. “SRB must also rationalize its tax rates in consultation with KCCI as there was plenty of space available in numerous sectors where the tax rate can either be reduced or enhanced”, he opined.
Vice Chairman BMG Haroon Farooki, in his remarks, stated that the business community faces a lot of problems and remains confused on various occasions when parallel taxes were being demanded by the FBR and SRB as well and both claim that these taxes fall under their domain. “This clash between the two tax collecting authorities puts legitimate taxpayers in a discomfortable position who sometimes even have to go to courts to settle the issues but it is high time that FBR and SRB must sit together to decide their domains in order to set the loyal taxpayers free from all the trouble”, he added.
He mentioned that taxation issues of indenters, security agencies and travels agents etc. have still not been addressed at SRB level which require attention.
Vice Chairman BMG Jawed Bilwani stressed that although Karachi contributes 95 percent revenue to SRB but sector-wise and city-wise breakup was unavailable. “SRB should look into the possibility of publicizing this important info so that we could examine the statistics and give inputs on where the tax rate needs to be enhanced and where it has to be reduced.”
President KCCI Muhammad Idrees, while welcoming Chairman SRB, stated that since Khalid Mehmood assumed charge, SRB’s revenue has been constantly increasing every year and it was heartening to see that most of the revenue was being contributed by the business & industrial community of Karachi. “We have no problem in contributing so much and we can contribute even more but the funds being generated from Karachi must be utilized on the infrastructure of this city which was in bad shape.”
He appreciated the support and cooperation being extended by Chairman SRB who has promptly resolved numerous issues highlighted by KCCI.
Chairman Businessmen Group (BMG) Zubair Motiwala, Vice Chairmen BMG Haroon Farooki and Jawed Bilwani, President KCCI Muhammad Idrees, Senior Vice President Abdul Rehman Naqi, Advisor SRB Mushtaq Kazmi and KCCI Managing Committee Members attended the meeting.
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Dollar retreats from all time high against PKR
KARACHI: The US dollar lost two paisas against the Pak Rupee (PKR) on Friday amid external payment demand.
The rupee ended at Rs171.18 to the dollar from previous day’s closing of Rs171.20 in the interbank foreign exchange market. The dollar recorded all time high at Rs171.20 a day earlier.
Currency experts said that high international commodity prices and rising domestic demand after ease in coronavirus cases escalated the demand for imported goods.
The import bill registered a sharp growth of 65 per cent to $18.63 billion during the first quarter (July – September) of the current fiscal year as compared with $11.28 billion in the corresponding quarter of the last fiscal year.
The State Bank of Pakistan (SBP) during the past few days introduced various measures to discourage outflow of dollars. However, these measures are unable to stop depreciation in rupee value.
The local currency remained under pressure since the start of the current fiscal year. The local unit has lost Rs13.64 or 8.66 per cent against the dollar from Rs157.54 on June 30, 2021 to Rs171.18 to date.
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Bank holiday announced
KARACHI: State Bank of Pakistan (SBP) on Friday announced that banks shall remain closed on October 19, 2021 on the occasion of Eid Milad-un-Nabi (Sallallahu Alayhi Wa-Sallam).
In a statement, the central bank said that it will remain closed on Tuesday, October 19, 2021 (i.e. 12th Rabi-ul-Awal, 1443 A.H.)
on the occasion of Eid Milad-un-Nabi (Sallallahu Alayhi Wa-Sallam).
Similar instructions have been also communicated to chief executives and presidents of commercial banks, Development Financial Institutions (DFIs) and Microfinance Banks (MFBs).
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SBP issues customers exchange rates for October 15
Karachi, October 15, 2021: The State Bank of Pakistan (SBP) has issued the official exchange rates for Friday, October 15, 2021.
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Habib Bank declares Rs26.44 billion 9-month profit
KARACHI: Habib Bank Limited (HBL) on Friday announced Rs26.44 billion as profit after tax for nine month period ended September 30, 2021.
The profit after tax of the bank was Rs24.98 billion in the same period of the last year.
The earning per share of the bank was at Rs18.03 for the nine months period ended September 30, 2021 as compared with Rs17.03 EPS.
Total income of the bank during January – September 2021 fell to Rs112 billion as compared with Rs113 billion n the same period of the last year.
Net markup income of the bank fell to Rs90.01 billion during the period under review as compared with Rs92.96 billion in the same period of the last year. Non markup income increased to Rs22.02 billion as compared with Rs20 billion.
Operating expenses were at Rs62.04 billion as compared with Rs62.77 billion.
Provisioning and write-offs fell to Rs3.9 billion during January – September 2021 as compared with Rs7.28 billion in the same period of the last year.
On a quarterly basis the bank declared a decline of 11.11 per cent in profit after tax (PAT) for the quarter ended September 30, 2021.
According to financial statement, the bank recorded Rs8.96 billion as net profit for the quarter July – September 2021 as compared with Rs10.08 billion in the same quarter of the last fiscal year.
Total income of HBL recorded 6.33 per cent decline to Rs40.40 billion for the quarter under review as compared with Rs43.13 billion in the same quarter of the last year.
Net Markup Income of the bank posted a decline of 9.6 per cent to Rs32.28 billion for the quarter ended September 30, 2021 as compared with Rs35.71 in the same quarter of the last year.
However, non-markup income registered a growth of 9.29 per cent to Rs8.11 billion as compared with Rs7.42 billion.
Operating expenses of the bank grew to Rs23.161 billion for the quarter ended September 30, 2021 as compared with Rs22.612 billion in the same quarter of the last year.
Similarly, the provisioning and write-offs fell to Rs1.75 billion for the quarter ended September 30, 2021 as compared with Rs3.04 billion in the same quarter of the last year.
The earning per share for the quarter fell to Rs6.17 as compared with Rs6.85.